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Member News - November 2018

Take us with you when you change jobs

By staying with us, you’re with an industry fund run only to benefit members, with low fees, and a history of strong long-term returns.

In fact, since 1978 we’ve delivered a return of 9.69%* on average per year for our MySuper Balanced option.

To see how much better off you could be with us over the long-term, compared to a retail fund, click here.

It’s easy to stick with us

Simply complete our online form then forward our email onto your new employer. Alternatively, complete the Standard Choice of Superannuation Form (that your employer gives you). Make sure you select us as your APRA-approved fund. Details on how to do this are available here.

Whichever way you do it, safeguard your hard-earned money and keep it with us – an industry fund that always puts your interests first.

^Past performance is not a reliable indicator of future performance.

We've been tough on fees so you save more

Our low fees just got even lower.

We take maximising your super seriously. We know how important low fees are to growing your super over the long term. A small change in fees can equate to a big difference in your retirement savings over time. That’s why we pass on any savings to you.

From 1 October 2018, we reduced most of our investment fees, plus our variable administration fee. This follows on from reducing our insurance premiums and some investment fees last year. We’re committed to putting members first and providing you with financial dignity now and in retirement.

What's changed?

Our administration fee is made up of two parts: a fixed $1.50 per week fee and a variable percentage-based fee. We’ve reduced our variable administration fee from 0.22% to 0.18% per annum of your account balance.

The investment fee for most of our investment options has also reduced. For example, if you’re invested in the MySuper Balanced (default) option (as most members are), your investment fee has reduced from 0.32% to 0.28% per annum.

Our indirect cost ratio (ICR), which is incurred by the fund and is not deducted directly from your account, has also been reduced from 0.43% to 0.39% per annum for the MySuper Balanced option.

Investment option

New fee

Old fee

Change in fee

MySuper Balanced (default)

0.28%

0.32%

–0.04%

High Growth

0.31%

0.35%

–0.04%

Targeted Return

0.18%

0.18%

0.00%

Moderate

0.25%

0.25%

0.00%

Conservative

0.20%

0.20%

0.00%

Australian Shares

0.30%

0.35%

–0.05%

International Shares

0.39%

0.42%

–0.03%

Indexed Shares

0.11%

0.15%

–0.04%

Property

0.19%

0.27%

–0.08%

Cash

0.04%

0.08%

–0.04%

All changes are effective from 1 October 2018. The changes to the MySuper Balanced option also apply to the Balanced option for pension accounts.

How much will you save?

If you have a super account balance of $50,000, and are invested in the MySuper Balanced option, then you’ll save $60 per annum.If you’d like to know more about any of our fees, please read our Fees and Costs booklet.

More insurance enhancements

In March this year we committed to the Insurance in Superannuation Voluntary Code of Practice and announced our plan to deliver further insurance enhancements to benefit our members.

As promised, from 1 October, we rolled out some further improvements to our insurance offering.

1. Expanded TPD definitions

We’ve added three additional definitions for Total and Permanent Disablement (TPD), including: permanent impairment, loss of limb and cognitive loss.This covers a broader range of TPD conditions and provides a greater number of circumstances to be eligible to claim a benefit.

2. Income Protection (IP) cover expanded for casual workers

Casual workers can now apply for either a 30, 60, or 90-day waiting period with a two or five-year benefit period (in line with what’s offered to those who are permanently employed). Before this change, casuals were only eligible to obtain IP cover with a two-year benefit period and 90-day waiting period.

3. Simplified default cover

Previously, default cover could start on the latest of one of four possible dates. However, to make it easier to determine when your default insurance cover starts, we’ve made it the latest of:• the date you commenced work with your employer; or• the first day of the period for which the first contribution is paid by your employer into your super account.

All these enhancements are provided at no additional cost to members. More details about our insurance offering can be found in our Insurance Guide. If you’d like to review or change your insurance cover, please call us on 1300 130 780.

Q&A with Nick

Meet Nick Huang, LUCRF Super Financial Adviser.

When do you think someone should get in touch with a financial adviser?

As early as you can. When you join the workforce, you start earning an income and get super contributions – this is the first trigger point to help set you up on the right path. Then, whenever there are big changes in your life, such as changing jobs, getting married, having a baby, buying a house; these are other trigger points which are good times to have a conversation with a financial adviser.

We always encourage our members to plan ahead so that they don’t miss out on any opportunities. At LUCRF Super, we offer free financial advice regarding your super or pension. In around 10 minutes we can sort through any questions you may have, just give us a call.

What are the options for insurance and what do we need to do when we’re thinking about it?

When you join LUCRF Super you get 1 unit of Death and Total and Permanent Disablement insurance. This is our default cover, designed to offer a level of protection for you and your family should the worst happen. However, it may not necessarily meet the needs of your personal circumstances.

Ask yourself, ‘What if I get sick or injured and can’t work? What if I can’t earn an income and pay my mortgage? How would I pay for living expenses and support my spouse and family?’ This is where income protection insurance is really important. It’s worthwhile considering these types of questions. That way you can be prepared and make sure you have the cover you need. Call us and we can help you decide what types of insurance may be suitable for you.

What do you like most about your role?

My role is different everyday; I really enjoy talking to people and helping our members. I come from a high-net-worth advice background, but I realise there are many members that don’t necessary have a lot of money, but advice is just as critical for them as well. Through my role at LUCRF Super I get the opportunity and the exposure, to serve our members and help them with their superannuation and insurance. That is really my passion. When members say, “Thank-you so much for all your help, you cleared up a lot of questions,” – that’s what makes my day.

If you’d like to speak with Nick about your financial situation, please call 1300 130 780.

What's your investor profile?

Most of our members are invested in the MySuper Balanced option, which is a mix of different types of investments, called growth and defensive assets. This option has delivered 9.69%^ on average per year since 1978. While this option is suitable for many people, it’s worth considering your personal circumstances to make the most of your super or pension.

How to choose

Factors to consider

It can be difficult to know which option might be right for you. It depends upon a lot of factors, such as: when you plan to retire, how comfortable you are with risk, or whether you want to avoid the likelihood of any investment loss. For example, if you’re retiring in the next five years, you might want less risk of negative returns. On the other hand, if you’re just starting your working life you may have more time to take on greater investment risk since your retirement plans are still a long way off.

10 options to choose from

Five options are pre-mixed, which means each one has a mix of assets (investment types). The other five options only invest in one investment type or asset (e.g. cash). Each option has a different investment objective and level of risk.